OWING MONEY TO SARS?

What's New?

9 March 2018 - SARS has appointed eight external debt collection agencies to recoup some of the R16.6 billion debt owed to SARS. The objective of the appointment is to enhance revenue collection by outsourcing the recovery of older and relatively small debt. The contract is with immediate effect until 28 February 2019.

At present, over 2.3 million taxpayers and traders owe SARS just under R150-billion.

Taxpayers and traders with outstanding accounts can therefore expect communication from the appointed agencies.

Those with queries are encouraged to contact the SARS Contact Centre at 0800 00 7277 (0800 00 SARS) or send SARS feedback here.

Please note: Year-end payments

The deadline for outstanding tax returns and payments due by end March, was Thursday 29 March 2018, before Easter. Due to the long weekend, taxpayers were requested to please pay by 12-midday. Pay conveniently online, on time - avoid penalties and interest. Being late could cost you!

Manage your tax debt

Do you have outstanding taxes? Do you need help deciding what to do or whomto call?

This page will provide you with information to assist you in sorting out your tax debt.

Taxpayers, both individuals and businesses, are required to be fully tax compliant through on time submission of returns and payments.

In instances where taxpayers are not compliant and have outstanding tax debt the Debt Management department is committed to assisting businesses and individuals to become fully compliant.

How much do I owe?

There are three ways to find out how much tax debt you owe:

1. Call the SARS Contact Centre:

There are two numbers to call

0800 00 SARS (7277) - between 08:00 and 17:00 Monday to Friday.

+27 11 602 2093 (International callers) - between 08:00 and 16:00 South African local time Monday to Friday.

Steps to follow:

Call the SARS Contact Centre and request a statement of account.

You will be requested to provide your tax reference number.

If you do not have your tax reference number you can provide the SARS Contact Centre Agent with your ID number or the business registration number.

How do I make a payment?

The following payment methods are available (effective from 1 April 2016):

eFiling

Electronic payments (EFT)

Payments at a bank: All payments can be made at any ABSA, AlBaraka Bank, Bank of Athens, Capitec, FNB, Habib Bank Zurich (HBZ), HSBC, Nedbank, Mercantile or Standard Bank branch.

No tax payment can be made at a SARS branch. Cheques posted / delivered to SARS will be returned to the client. Cash and cheque duty payments are accepted at SARS Customs branches.

For more details and information on how to use each of the payment methods above please click here

What if I can’t pay the full amount now?

In order to avoid penalties and interest it is best to file returns and make payments on time.If you are not currently able to pay your tax debt, please contact SARS without delay.In certain circumstances we can reach an agreement with you to defer your tax debt for later payment or for payment by instalments.

Please note the following:

SARS has the option to decline the request.

Interest will accrue on any unpaid debt.

If you don’t adhere to the conditions of the payment arrangement the payment agreement will be terminated and normal collection proceedings will resume.

In certain circumstances a compromise may be requested on your outstanding tax debt. You will need to discuss your financial position openly with SARS.

If you require payment arrangements please contact us and we will assist you and provide you with all relevant documentation.

How do I make payment arrangements?

Do you have outstanding tax debt and are unable to settle the amount in one payment?

SARS provides for a deferment, or instalment payment arrangement for outstanding tax debt. You may request and enter into an instalment payment arrangement with SARS. It allows you to pay your outstanding debt in one sum or in instalments over time until you have paid your entire debt including applicable interest. This agreement however would be subject to certain qualifying criteria.

The taxpayer suffers from a lack of assets or liquidity which is reasonably certain to be remedied in the future;

The taxpayer anticipates income or other receipts which can be used to satisfy the tax debt;

Prospects of immediate collection activity are poor or uneconomical but are likely to improve in the future;

Collection activity would be harsh in the particular case and the deferral or instalment agreement is unlikely to prejudice tax collection;

The taxpayer provides the security as may be required;

All outstanding returns and/or recons are submitted.

Tip 1: The payment arrangement must cover the entire debt and SARS may only consider the payment arrangement request when non-compliance has been remedied (i.e. all returns and/or recons are submitted).

Tip 2: If the taxpayer has defaulted on previous payment arrangement, reasonable and valid reasons for the default must be provided before another deferment request can be requested.

What if I don’t agree with the debt?

If you are not in agreement with your tax debt, you may lodge a dispute. To lodge a dispute please go to objections and appeals.Even though you are disputing the tax debt you remain under obligation to pay the debt whilst your dispute is being handled.

Application for suspension of payment may be requested while the dispute is being dealt with. Interest will accrue on any unpaid debt. Call the contact centre or visit your nearest branch for assistance.